If you live in a rented house and use it for your business, can you deduct the rent that you pay on your taxes? Also, what is the difference between Supply expenses and office expenses? And what is considered supply and office expenses and utilities?
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Yes, if you rent (rather than own) your home office space, and you qualify for the home office deduction, you can deduct a percentage of your monthly rent. That percentage is equal to the percentage of your home's square footage used for work. Y
In fact, you will enter your full expenses for maintaining a home and Turbo Tax will adjust your home office expenses by the percentage equal to your home office footage/total of your home's square footage.
As far as the difference between office and supply expenses, these terms are used interchangeably at times. Generally office expenses include Office supplies that are short-term items that have to be refilled or replaced. This is used for things like staples, toner, printer paper, pens etc. Other supply expenses would include things like cleaning supplies or other supplies that are not office related but are small ticket items you use in your home office.
Utilities are utilities paid. you can deduct utilities used for your home office. The amount that can be deducted is determined by the home office footage/total of your home's square footage percentage.
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